Criminals Primarily Target Young Investors for Crypto Scams: Report

Criminals are primarily targeting young investors for their highly sophisticated crypto scams, according to a report from The Telegraph. Banking trade body UK Finance has warned that more and more victims are losing millions to scammers every day last year. Cases where a victim is tricked into sending money directly to criminals, jumped by more than a quarter in 2021 to almost 196,000. Fraud victims lost £583m over the course of the year, equivalent to £1.6 million a day, and a rise of 25 percent from the year before. However, more than £171 million was lost to investment scams alone, a daily loss of more than £470,000, more than 50 percent higher than the year before. Most victims will never recover funds lost to scammers. Of the £583 million loss last year, just £271 million or 47 percent was returned to consumers, although this is a slight improvement in 2020. Young People’s Interest in Crypto Numerous studies show that young people are more likely to invest in cryptocurrencies than in stocks, bonds, or other share-based items. A JPMorgan report from last year highlighted that during the pandemic, older investors in the US turned to gold, while young people were more likely to eye bitcoin. Part of the allure of crypto, according to some, is that there is a measure of the risk-taking, thrill-seeking behavior often ascribed to youngsters in investing in a market so novel, so volatile, and so heavily promoted by celebrities. O...